HB 1902-1_ Filed 04/11/2001, 08:11

SENATE MOTION


MR. PRESIDENT:

    I move
that Engrossed House Bill 1902 be amended to read as follows:

SOURCE: Page 1, line 5; (01)MO190214.1. -->     Page 1, line 5, after "(c)" delete "," and insert " and IC 6-3.1-20-7,".
    Page 4, line 24, after "section." insert " The only duty of:
        (1) a township assessor in a qualifying county; or
        (2) a county assessor of a qualifying county;
with respect to that general reassessment is to provide to the state board of tax commissioners or the state board's contractor under subsection (c) any support and information requested by the state board or the contractor.
".
    Page 4, line 30, after "date." insert " The contract applies for the appraisal of land and improvements with respect to all classes of real property in the qualifying county.".
    Page 6, line 14, delete "contract with the firm referred to in".
    Page 6, line 15, delete "subsection (c) to".
    Page 6, line 18, after "The" insert " state board may contract to have the review performed by an appraisal firm. The state board or its".
    Page 6, line 32, delete "to be" and insert " by an appraisal firm".
    Page 6, line 33, delete "conducted by the firm referred to in subsection (c)".
    Page 7, between lines 26 and 27, begin a new paragraph and insert:
    " (p) A township assessor in a qualifying county or a county assessor of a qualifying county shall provide information requested in writing by the state board of tax commissioners or the state board's contractor under this section not later than seven (7) days after receipt of the written request from the state board or the contractor. If a township assessor or county assessor fails to provide the requested information within the time permitted in this subsection, the state board of tax commissioners or the state board's contractor may seek an order of the tax court under IC 33-3-5-2.5 for production of the information.".
    Page 7, line 27, delete "(p)" and insert " (q)".
    Page 7, delete lines 29 through 42, begin a new paragraph and insert:
SOURCE: IC 6-1.1-8.5; (01)MO190214.3. -->     "SECTION 3. IC 6-1.1-8.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]:
     Chapter 8.5. Assessment of Industrial Facilities
    Sec. 1. As used in this chapter, "industrial company" means an owner or user of industrial property.
    Sec. 2. As used in this chapter, "industrial facility" means a company's real property that:
        (1) has been classified as industrial property under the rules of the state board; and
        (2) has a true tax value, as estimated by the state board, of at least twenty-five million dollars ($25,000,000) in a qualifying county.
The term includes real property that is used under an agreement under which the user exercises the beneficial rights of ownership for the majority of a year. The term does not include real property assessed under IC 6-1.1-8.
    Sec. 3. As used in this chapter, "qualifying county" means a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
    Sec. 4. As used in this chapter, "state board" refers to the state board of tax commissioners.
    Sec. 5. An industrial facility located in a qualifying county shall be assessed in the manner prescribed in this chapter.
    Sec. 6. Before:
        (1) January 1, 2004; and
        (2) January 1 of each year that a general reassessment commences under IC 6-1.1-4-4;
the county assessor of each qualifying county shall provide the state board a list of each industrial facility located in the qualifying county.
    Sec. 7. (a) The township assessor of each township in a qualifying county shall notify the state board of a newly constructed industrial facility that is located in the township served by the township assessor.
    (b) Each building commissioner in a qualifying county shall notify the state board of a newly constructed industrial facility that is located in the jurisdiction served by the building commissioner.
    (c) The state board shall schedule an assessment under this chapter of a newly constructed industrial facility within six (6) months after receiving notice of the construction from the appropriate township assessor or building commissioner.
    Sec. 8. For purposes of the general reassessment under IC 6-1.1-4-4 or a new assessment, the state board shall assess each industrial facility in a qualifying county.
    Sec. 9. The county assessor of the qualifying county in which an

industrial facility is located shall provide support to the state board's assessor during the course of the assessment of the industrial facility.
    Sec. 10. (a) When the state board determines its final assessments of an industrial facility under this chapter, the state board shall certify the true tax values to the county assessor and the county auditor of the qualifying county in which the property is located. In addition, if an industrial company has appealed the state board's final assessment of the industrial facility, the state board shall notify the county auditor of the appeal.
    (b) The county assessor of a qualifying county shall review the certification of the state board to determine if any of an industrial company's property has been omitted and notify the state board of additions the county assessor finds are necessary. The state board shall consider the county assessor's findings and make any additions to the certification the state board finds are necessary. The county auditor shall enter for taxation the assessed valuation of an industrial facility that is certified by the state board.
    Sec. 11. (a) A taxpayer or the county assessor of the qualifying county in which the industrial facility is located may appeal an assessment by the state board made under this chapter to the appeals division of the state board. An appeal under this section shall be conducted in the same manner as an appeal under IC 6-1.1-15-4 through IC 6-1.1-15-8. An assessment made under this chapter that is not appealed under this section is a final unappealable order of the state board.
    (b) The state board shall hold a hearing on the appeal and issue an order within one (1) year after the date the appeal is filed.
    Sec. 12. The state board shall adopt rules to provide just valuations of industrial facilities under this chapter.
    Sec. 13. This chapter is designed to provide special rules for the assessment and taxation of industrial facilities in a qualifying county. If a provision of this chapter conflicts with a provision of another chapter of this article, the provision of this chapter controls with respect to the assessment and taxation of an industrial facility.

SOURCE: IC 6-1.1-18.5-3; (01)MO190214.4. -->     SECTION 4. IC 6-1.1-18.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Except as otherwise provided in this chapter and IC 6-3.5-8-12, a civil taxing unit that is treated as not being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, that was used

to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of subsection (b) for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2 of this chapter.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
    (b) Except as otherwise provided in this chapter and IC 6-3.5-8-12, a civil taxing unit that is treated as being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, used to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of this subsection for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2 of this chapter.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by

the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
        STEP EIGHT: Subtract the amount determined under STEP FIVE of subsection (e) from the amount determined under STEP SEVEN of this subsection.
    (c) If a civil taxing unit in the immediately preceding calendar year provided an area outside its boundaries with services on a contractual basis and in the ensuing calendar year that area has been annexed by the civil taxing unit, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals the amount paid by the annexed area during the immediately preceding calendar year for services that the civil taxing unit must provide to that area during the ensuing calendar year as a result of the annexation. In all other cases, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals zero (0).
    (d) This subsection applies only to civil taxing units located in a county having a county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1) of one percent (1%) as of January 1 of the ensuing calendar year. For each civil taxing unit, the amount to be added to the amount determined in subsection (e), STEP FOUR, is determined using the following formula:
        STEP ONE: Multiply the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year by two percent (2%).
        STEP TWO: For the determination year, the amount to be used as the STEP TWO amount is the amount determined in subsection (f) for the civil taxing unit. For each year following the determination year the STEP TWO amount is the lesser of:
            (A) the amount determined in STEP ONE; or
            (B) the amount determined in subsection (f) for the civil taxing unit.
        STEP THREE: Determine the greater of:
            (A) zero (0); or
            (B) the civil taxing unit's certified share for the ensuing calendar year minus the greater of:
                (i) the civil taxing unit's certified share for the calendar year that immediately precedes the ensuing calendar year; or
                (ii) the civil taxing unit's base year certified share.
        STEP FOUR: Determine the greater of:
            (A) zero (0); or
            (B) the amount determined in STEP TWO minus the amount determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount determined

in subsection (e), STEP THREE, as provided in subsection (e), STEP FOUR.
    (e) For each civil taxing unit, the amount to be subtracted under subsection (b), STEP EIGHT, is determined using the following formula:
        STEP ONE: Determine the lesser of the civil taxing unit's base year certified share for the ensuing calendar year, as determined under section 5 of this chapter, or the civil taxing unit's certified share for the ensuing calendar year.
        STEP TWO: Determine the greater of:
            (A) zero (0); or
            (B) the remainder of:
                (i) the amount of federal revenue sharing money that was received by the civil taxing unit in 1985; minus
                (ii) the amount of federal revenue sharing money that will be received by the civil taxing unit in the year preceding the ensuing calendar year.
        STEP THREE: Determine the lesser of:
            (A) the amount determined in STEP TWO; or
            (B) the amount determined in subsection (f) for the civil taxing unit.
        STEP FOUR: Add the amount determined in subsection (d), STEP FOUR, to the amount determined in STEP THREE.
        STEP FIVE: Subtract the amount determined in STEP FOUR from the amount determined in STEP ONE.
    (f) As used in this section, a taxing unit's "determination year" means the latest of:
        (1) calendar year 1987, if the taxing unit is treated as being located in an adopting county for calendar year 1987 under section 4 of this chapter;
        (2) the taxing unit's base year, as defined in section 5 of this chapter, if the taxing unit is treated as not being located in an adopting county for calendar year 1987 under section 4 of this chapter; or
        (3) the ensuing calendar year following the first year that the taxing unit is located in a county that has a county adjusted gross income tax rate of more than one-half percent (0.5%) on July 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unit depends upon the taxing unit's certified share for the ensuing calendar year, the taxing unit's determination year, and the county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1) that is in effect in the taxing unit's county on July 1 of the year preceding the ensuing calendar year. For the determination year and the ensuing calendar years following the taxing unit's determination year, the amount is the taxing unit's certified share for the ensuing calendar year multiplied by the appropriate factor

prescribed in the following table:

COUNTIES WITH A TAX RATE OF 1/2%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    0
COUNTIES WITH A TAX RATE OF 3/4%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    1/2
COUNTIES WITH A TAX RATE OF 1.0%

        Subsection (d)     Subsection (e)
    Year    Factor     Factor
For the determination year    1/6     1/3
For the ensuing calendar
year following the determi-
nation year    1/4     1/3
For the ensuing calendar
year following the determi-
nation year by two (2) years    1/3     1/3".
    Delete pages 8 through 23.
SOURCE: Page 24, line 1; (01)MO190214.24. -->     Page 24, delete lines 1 through 14.
    Replace the effective date in SECTION 20 with "[EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]".
    Page 24, line 33, delete "An" and insert " (a) Except as provided in subsection (b), an".
    Page 25, between lines 5 and 6, begin a new paragraph and insert:
    " (b) An individual is not entitled to a credit under this chapter for a taxable year for property taxes paid on the individual's homestead if the individual claims the deduction under IC 6-3-1-3.5(a)(17) for the homestead for that same taxable year.".
    Page 25, delete lines 40 through 42, begin a new paragraph and insert:
    " (b) One-half (1/2) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable to the county under IC 4-33-12-6(b)(2); and
        (2) paid instead to the state general fund.
    (c) One-sixth (1/6) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable under IC 4-33-12-6(b)(1) to each of the following:
            (A) The largest city by population located in the county.
            (B) The second largest city by population located in the county.
            (C) The third largest city by population located in the county; and
        (2) paid instead to the state general fund.
".
    Page 26, delete lines 1 through 29.
    Page 28, line 1, after "option income tax," insert " or".
    Page 28, line 2, delete ", or the property tax reduction income tax".
    Page 28, delete lines 5 through 24.
    Page 28, line 25, delete "(f)" and insert " (d)".
    Page 31, between lines 9 and 10, begin a new paragraph and insert:
    " (g) This subsection applies if the fiscal body of a municipality in a qualifying county adopts an ordinance under section 11 of this chapter to impose a municipal option income tax. The maximum permissible ad valorem property tax levy of the municipality is not subject to any increase under IC 6-1.1-18.5-3(a) or IC 6-1.1-18.5-3(b) for taxes payable in:
        (1) the calendar year that immediately succeeds the calendar year in which the ordinance is adopted; and
        (2) each succeeding calendar year in which the municipal option income tax remains in effect.
    (h) This subsection applies if the fiscal body of a municipality in a qualifying county adopts an ordinance under section 14 of this chapter to rescind the municipal option income tax, or if the municipal option income tax in a municipality is rescinded by operation of law. For purposes of IC 6-1.1-18.5-3(a) STEP ONE or IC 6-1.1-18.5-3(b) STEP ONE, the preceding calendar year is considered to be the calendar year in which an ordinance was adopted under section 11 of this chapter to impose the municipal option income tax.
".
    Page 36, delete lines 24 through 42.
    Delete pages 37 through 44.
    Page 45, delete lines 1 through 9.
    Page 45, line 20, delete "the county property tax reduction income".
    Page 45, line 21, delete "tax (IC 6-3.5-9)".
    Page 45, delete line 42, begin a new paragraph and insert:
SOURCE: IC 33-3-5-2.5; (01)MO190214.9. -->     "SECTION 9. IC 33-3-5-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) As used in this section, "qualifying county" means a county having a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).
    (b) As used in this section, "contractor" means the general reassessment contractor of the state board of tax commissioners under IC 6-1.1-4-32.
    (c) Upon petition from:
        (1) the state board of tax commissioners; or
        (2) the contractor;
the tax court may order a township assessor in a qualifying county or a county assessor of a qualifying county to produce information requested in writing from the township assessor or county assessor by the state board of tax commissioners or the contractor.
    (d) If the tax court orders a township assessor or county assessor to provide requested information as described in subsection (b), the tax court shall order production of the information not later than fourteen (14) days after the date of the tax court's order.
    (e) The tax court may find
that any willful violation of this section by a township assessor or county assessor constitutes a direct contempt of the tax court.".
SOURCE: Page 46, line 1; (01)MO190214.46. -->     Page 46, delete lines 1 through 30, begin a new paragraph and insert:
SOURCE: ; (01)MO190214.10. -->     "SECTION 10. [EFFECTIVE JULY 1, 2001] (a) IC 6-1.1-8.5, as added by this act, applies to property taxes first due and payable after December 31, 2004.
    (b) This SECTION expires January 1, 2006.
".
    Replace the effective date in SECTION 26 with "[EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]".
SOURCE: Page 46, line 33; (01)MO190214.46. -->     Page 46, line 33, delete "2001" and insert " 2000".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1902 as printed April 6, 2001.)

________________________________________

Senator LANDSKE


MO190214/DI 52     2001